Understanding fiduciary litigation is easier when you have a Massachusetts attorney’s guidance. Potential breaches of fiduciary duty can arise for trusts, estates, or businesses. No matter the context in which you’re facing fiduciary litigation, it’s important to understand your rights. Depending on how you’re involved, you may have the right to bring litigation, need to defend litigation, or have another role. When you work with Daigle Law Office, we’ll help clarify what you can expect from the fiduciary litigation process moving forward.
Legal Definition
A fiduciary is someone who acts on behalf of others to take important actions such as managing money, choosing investments, making business decisions, and distributing earnings. A common example of a fiduciary is the trustee of a trust. Someone who wants to start a trust appoints a trustee to manage assets on behalf of beneficiaries. Under the law, fiduciaries have important obligations such as the duty of care and duty of loyalty. The trustee does not get to keep the trust assets and must follow strict legal rules on investing and distributing them. They must only act for the beneficiaries’ benefit, not their own.
As mentioned above, someone may hold fiduciary status as to a trust, estate, or business. For example, you might be a trustee if you:
- Manage a trust’s assets
- Have been appointed estate executor or administrator
- Are a corporate director or officer
- Are a partner in a partnership
- Are a member or manager of an LLC
- Hold a professional fiduciary position
If you’re not sure whether your position counts as fiduciary in nature, it’s a good idea to check with an attorney so you can clarify your responsibilities.
What Is Fiduciary Litigation?
Fiduciary litigation refers to a type of court case where somebody alleges that a fiduciary has breached a duty or duties. As mentioned above, fiduciaries have duties such as the duty of care and duty of loyalty. Under the duty of care, fiduciaries must carefully invest assets entrusted to them and making other sound decisions about issues affecting the trust, estate, or business they manage. Under the duty of loyalty, fiduciaries must avoid conflicts of interest, placing the beneficiaries, heirs, or shareholders’ interests above their own personal interests. Sometimes, those involved with a trust, estate, or business notice that the fiduciary took actions that call into question their care or loyalty. Certain interested parties may file a lawsuit against the fiduciary for breach of fiduciary duties.
Sometimes the lawsuit will allege that the fiduciary violated their duties, while other times the lawsuit may seek an accounting of money and property handled by the fiduciary or a declaration that something the fiduciary did was incorrect. A fiduciary lawsuit is a civil case heard by a judge and sometimes a jury. The litigation may need to proceed in probate court or general civil court depending on the type of fiduciary. During the case, the beneficiaries or other interested people will seek more evidence that the fiduciary acted wrongfully, while the fiduciary will try to defend their decision. It’s vital that both sides retain attorneys familiar with fiduciary litigation to support their interests, as the law relating to fiduciary duties, trusts, probate, and corporations can be extremely complex.
Frequently Asked Questions
I’m a fiduciary accused of a breach of duty. What should I do?
You need an attorney right away. Being accused of a breach of fiduciary duty is a very serious accusation. Getting a lawyer ensures that you have someone on your side protecting your interests and giving you advice on your defense. Since the law relating to fiduciaries is very complex and these types of cases can be very contentious, defending yourself is not a great idea. Call us today to discuss your case.
I’m a beneficiary worried that the fiduciary isn’t acting fairly. Can you help?
We’d be happy to discuss your options. It’s important that we have a conversation about the exact circumstances of your case, so please bring any trust documents, distribution notifications, estate documents, or other paperwork you have relating to the fiduciary’s actions to your consultation. This will help us do the most accurate evaluation possible of your options moving forward.
Need Litigation Advice in Massachusetts? Call Us
Are you looking for a dependable, experienced lawyer who can assist with fiduciary litigation, even if you’re not sure whether you have a case? Daigle Law Office’s attorneys can provide you with experienced Massachusetts fiduciary help. It’s not easy to deal with fiduciary situations, and it’s frustrating when you’re not sure of your rights. Daigle Law Office helps clients dealing with tough situations who need solid, reliable legal advice. To schedule a consultation, call 508-771-7444 or use our convenient Contact Form.
